Celsius vs. BlockFi – Beat The Banks With Crypto Lending

Celsius is a peer-to-peer lending platform with no set interest rates, while BlockFi is an institutional grade crypto lender. The two are similar in many ways, but there are some key differences that make one better for certain types of investors.

Celsius is a cryptocurrency that is based on the Ethereum blockchain. The celsius network liquidation is the process of converting Celsius into other cryptocurrencies or fiat currencies.

Have you ever been in a situation when you needed to act quickly? I’m not talking about a scenario where “that shark is getting too near for comfort,” but rather one where “my vehicle won’t start,” “I only have $10 in my bank account,” and “my boss threatened to fire me if I don’t show up.” Fortunately, crypto loan services like BlockFi and the Celsius Network may assist you in getting out of these binds. 

These situations happen more often than you would imagine, and most people are unprepared. The conventional banking industry is aware of (and some argue encourages) the fact that 40% of Americans would be unable to pay a $400 emergency. 

Their brass ring is kept out of reach by the financial system.

It’s why they can get away with asking you to sign away your soul and your children’s college money in exchange for assistance. Traditional banks are the sharks we described before when you need money, and when they smell blood in the water, they aren’t content with a modest return. They’re want all you have. 

Paycheck loan schemes are much worse, since they profit from your inability to repay them on time. They provide a “simple” method of protecting your credit score. You simply need to take out another payday loan from them for the amount you owe, which means that if you suffer a financial setback, the $300 you owe them may balloon to $1,000 in a month’s time. It might become a lot worse, believe it or not.  

It’s a system intended to keep you down so you’ll have to keep borrowing money from wealthy people. 

The best way to put it is how George Carlin said it: 

“It’s a huge club, and you’re not a member.” You and I are not members of the exclusive group. By the way, it’s the same huge club they use all day to hit you over the head with when they teach you what to believe.”

Cryptocurrency lending and borrowing is the way to go if you’re weary of propping up their system and making other people wealthy. Right present, there are two main marketplaces for obtaining and disbursing crypto loans: Celsius and BlockFi. Continue reading for a comparison of the two and my recommendation on which one is the best. 

What is the Celsius Crypto Lending Network, and how does it work? 

Celsius is a crypto lending software that can be downloaded on both Android and Apple devices. The business was established in 2017 by Alex Mashinsky and Daniel Leon. Mashinsky (CEO) pioneered Wi-Fi connectivity in the NYC subway system and aircraft after inventing VoIP, and Leon serves on the boards of businesses such as Beyon3D and GroundLink.

It works in a similar way to a conventional savings account in that you may deposit bitcoin and earn interest on it. 

Celsius lends institutional and retail borrowers the money you and everyone else put in. On the money they borrow, the borrowers pay an interest rate, and Celsius distributes that money to account holders. Every Monday, you’ll get a payment from Celsius depending on the money it receives from the loans. 

You may also use your coins as collateral to borrow money from the network. The best part is that the loan amount and approval are based on the quantity of coins you put up as collateral rather than your credit score. 

When you apply for a loan, they don’t even check your credit! Depending on your requirements, you may take out loans in either cash or stablecoins. You won’t have to wait as long as you would with a conventional bank loan since you’ll find out whether they’ve accepted you for a loan in most instances within minutes. 

What exactly is BlockFi? 

BlockFi may be the most popular crypto lending platform available; if not, it certainly ranks at the top. 

This site enables you to deposit your coins and earn interest on them, as well as borrow against them as collateral, similar to Celsius. BlockFi also has its own exchange where you can swap your coins for one of the other currencies they offer. 

With BlockFi, you may get your company’s interest payments in any supported currency of your choosing, which is useful if you wish to diversify your portfolio. 

BlockFi pays you interest on a monthly basis, and you may start earning as soon as your coins arrive in your account. You may earn up to 8.6 percent APY depending on the kind of currency you hold. With current interest rates, if you had 1 bitcoin, you would earn 3,554.42 in interest over the course of a year. 

Let’s look at various metrics to determine which one is better for you now that you have a basic understanding of what the two exchanges are. 

  BlockFi Celsius
Security  3/5 5/5
User-Friendliness  4/5 4.5/5
Interest Rates and Fees 4/5 5/5
Characteristics that are unique 4/5 3/5
Total 3.75/5 4.375/5

Security 

Both businesses have done an excellent job of making it safe to lend Bitcoin and profit from the interest, but there are a few problems that lead us to choose Celsius in terms of account security. 

Security for the Celsius Network 

Celsius uses a number of different partners to keep client money safe, including BitGo, On Chain, Prime Trust, Kingdom Trust, and Fireblocks. 

Celsius has approximately 100,000 users worldwide and a market capitalization of over $700 million. The business has earned more than $12 million in interest on loans, so it’s no stranger to large sums of money. 

They haven’t had any significant security issues thus yet. The only security concern is that they have access to the keys to your cryptocurrency wallets. They don’t attempt to conceal it, yet some people are concerned about it. 

I’m a strong believer in the phrase “not your keys, not your money,” but I’ve never had an issue with Celsius since it works differently than a conventional wallet. 

BlockFi Safety 

BlockFi’s primary custodian for holding coins is Gemini. This is a significant advantage since Gemini is a well-known brand in the crypto security sector. 

The main problem with BlockFi is that their marketing department had a data leak in early 2020. Although no client money were stolen, customers’ personal information, such as their names, addresses, phone numbers, and email addresses, was exposed. 

Users’ social security numbers and bank account numbers were kept secure, but the prospect of a SIM swap being used against a member of their team was enough to make them nervous. 

Because of this, their security rates are below Celsius, and they haven’t had any security problems. 

User-Friendliness 

To earn interest on your coins, both platforms need your name, address, social security number, and other information when you sign up for an account. This has less to do with the platforms themselves and more to do with government laws that demand this information. 

It’s very simple to get your coins onto the platforms. It’s a straightforward transfer, identical to what you’d do with any other wallet. 

Withdrawing your money, on the other hand, is where things become complicated, and where Celsius once again outperforms BlockFi. I’ve never had trouble withdrawing cash from Celsius, but BlockFi requires you to wait up to seven days for your money to arrive in your bank account. 

The seven-day delay isn’t always the case, but when it is, it’s a huge inconvenience, and there’s not much customer service can do to hurry things up. They’ll urge you to wait and assure you that it’s on its way. Even though it doesn’t seem like a long time, when you’re dealing with thousands of dollars in the balance, it may be stressful. 

However, BlockFi has the benefit of a web-based website. It’s either a phone app or nothing with Celsius. Personally, I believe Celsius will create a web-based system once they reach a larger user base, but even if they don’t, it’s a little point to ponder when it comes to withdrawals and security. 

Interest Rates and Fees

For one reason, Celsius wins again when it comes to fees: withdrawals. 

When you withdraw using BlockFi, you’ll get one free per month. Following that, you’ll have to pay a charge of.0.00075 BTC or 0.002 ETH. You may withdraw sums more than $5,000 to your bank account immediately, while quantities less than $5,000 must be withdrawn using stable coins. 

If you need to make multiple withdrawals each month, that is a reasonable amount of money to spend. 

You don’t have to pay any fees using Celsius. Nothing. Nada. Zip. They are the ones who give you money, not you who give them money.  

Celsius offers higher interest rates than BlockFi, especially if you utilize the CEL currency. Your rates may reach as high as 12% with this currency, which is exceptional when compared to any other platform or conventional savings accounts. 

Traditional coin interest rates are often less than 5%, but still more than a normal savings account, while stablecoin interest accounts are typically 8.5 percent or greater. 

In most instances, BlockFi provides lesser interest rates, but since the site is also an exchange, they have the benefit of being able to transfer their currencies around. Although I don’t believe this makes much of a difference since if you’re interested in interest, you’re presumably thinking of holding for a long time, it’s still worth mentioning. 

Characteristics that are unique

This is a toss-up, but if I had to choose one platform over the other, it would be BlockFi. 

Celsius has its own currency that provides higher interest rates when used, which is fantastic, but it’s basically their only distinguishing feature. You’ll also get a piece of the Celsius Network’s earnings if you purchase this currency, which is a good reason to do so. 

BlockFi offers two distinct advantages. The first is that it also functions as an exchange, which is useful if you want to mix things up. 

Celsius, on the other hand, counteracts this shortcoming by offering much more coins than BlockFi. On BlockFi, you can trade currencies, but your choices are restricted. With Celsius, you may collect interest on a larger number of coins, allowing you to generate more money over time. 

The main benefit of BlockFi is that they’ll be offering a BlockFi Bitcoin Rewards Credit Card, which will enable you to earn 1.5 percent rewards (in bitcoin) on every transaction. You may sign up for the waiting list right now, and you’ll be informed when the card becomes available. 

However, there’s a strong possibility that this card will have some hefty credit criteria. It’s a nice feature, but it’s not enough to put BlockFi ahead in our comparison. 

My Final Thoughts: Celsius Comes Out on Top.

Celsius comes out on top, and it’s not quite as close as you would think. That’s not to suggest BlockFi isn’t a good choice: it’s still better than a lot of other options. They would be more competitive versus Celsius if they could solve their withdrawal issue and offer reduced withdrawal costs. 

For the time being, Celsius is the best network. If you want to increase your money, I highly advise you to invest in Celsius, since Bitcoin lending has exploded as the value of the cryptocurrency has risen in recent months. You’ll be better off if you start sooner rather than later. It’s a lengthy game, but it’s a good one. 

If you do decide to join up with Celsius, please use my referral code to receive $50 in BTC when you deposit $400 or more (and keep it for 30 days): 1529325918

Make sure you’re keeping the rest of your money securely in a secure wallet. If you’re searching for a fantastic wallet, I’ve compiled a list of my favorites here. Personally, I like the Ledger Nano X since it is simple to use.

If you have any experience with these two crypto loan services, please leave a comment below and tell me what you think!

The cryptoryancy is a new crypto lending service that allows users to borrow and lend Bitcoin, Ethereum or Litecoin.

Frequently Asked Questions

Which is better BlockFi or Celsius?

Celsius is a better option than BlockFi.

Is my crypto safe on BlockFi?

All BlockFi accounts are protected by 2-Factor Authentication and we have a strict policy of never storing your funds on the platform.

Is Celsius Safe crypto?

 

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